From 1 October 2025, new restrictions on the use of confidentiality provisions under the Victim and Prisoners Act 2024 will come into force in England and Wales.
As noted in this round-up article and global update, the Victim and Prisoners Act 2024 (‘the Act‘) will make any contractual provision void if it seeks to prevent the disclosure of information concerning criminal conduct by a ‘victim’, or a person who reasonably believes they are a victim, to certain categories of persons.
These new restrictions will come into force in England and Wales from 1 October 2025. The Government has also issued new non-statutory guidance ahead of this to help businesses and individuals understand these changes.
Background
Broadly speaking, non-disclosure agreements are legal contracts or provisions of legal contracts that place confidentiality requirements on another in respect of certain information, usually for something of value or payment (‘NDAs‘). The use of such NDAs has come under increasing scrutiny, in particular, following the #MeToo movement.
Currently, there are some legal restrictions on the use of NDAs, including that they cannot seek to prevent an individual from reporting a crime to the police or prevent a worker from making certain protected disclosures under whistleblowing laws. There are also regulatory considerations in respect of NDAs (which is outside the scope of this article).
What is Changing?
Section 17 of the Act will extend the circumstances in which disclosures will be permitted and will make any contractual provision void if it seeks to prevent a permitted disclosure under the Act.
A permitted disclosure is the disclosure of information made by a victim, or a person who reasonably believes they are a victim, to certain categories of persons for certain purposes, including to:
- Police or other bodies that investigate or prosecute crime, such as the Financial Conduct Authority, Serious Fraud Office and Information Commissioner’s Office, for the purposes of investigating or prosecuting the relevant conduct
- Qualified lawyers, for seeking legal advice about the relevant conduct
- Regulated professionals, for obtaining professional support in relation to the relevant conduct
- Victim support services, for obtaining support in relation to the relevant conduct
- Regulators, for cooperating with the regulator in relation to the relevant conduct
- To a person authorised to receive information on behalf of any of the above, for the relevant purposes mentioned above
- The partner, parent or child of the person making the disclosure, for the purpose of obtaining support in relation to the relevant conduct
Draft regulations have also been introduced to Parliament to extend the above list in the Act to include permitted disclosures to:
- The Criminal Injuries Compensation Authority, for the purpose of a claim for compensation in relation to certain relevant conduct
- A court or tribunal, for the purpose of issuing or pursuing any proceedings in relation to a decision of the Criminal Injuries Compensation Authority made in connection with a claim for compensation
However, disclosures to anyone on the specified list will not be a ‘permitted disclosure’ if the primary purpose of the disclosure is for making the information public, or if it is otherwise not made for the specific purpose set out in respect of the relevant conduct. Similarly, disclosures to anyone outside this list will not count as permitted disclosures under section 17.
Note that the definition of ‘victim’ has a broad meaning under the Act, and includes a person who has suffered harm (including physical, mental or emotional harm and economic loss) as a direct result of being subjected to criminal conduct or other related situations, including (among other circumstances) whether the individual has seen, heard, or otherwise directly experienced the effects of criminal conduct at the time the conduct occurred.
Preparing for change
To prepare for this change, employers should review their approach to use of NDAs in contracts and settlement agreements, and ensure that any templates include appropriate carve-outs to comply with this change in law.
For more details of the proposed changes in the Employment Rights Bill, which would extend the list of disclosures under whistleblowing laws qualifying for protection to disclosures about sexual harassment, visit our Policy Hub.